Discontinued Operations and Held For Sale Businesses

3 Months Ended

Jun. 30, 2011

DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES

15. DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES

Discontinued operations includes the results of the following generation businesses:

• Eastern Energy, including Cayuga, Greenidge, Somerset and Westover, in New York
• Borsod and Tiszapalkonya, in Hungary
• Ras Laffan, in Qatar (sold in October 2010);
• Barka, in Oman (sold in August 2010); and
• Lal Pir and Pak Gen, in Pakistan (sold in June 2010).

For the three andsix months ended June 30, 2010, the Company recognized a loss on disposal and impairment losses totaling$9 million and $22 million ($3 million and $10 million, net of tax and noncontrolling interests), respectively, to reflect the change in the carrying value of net assets of Lal Pir and Pak Gen subsequent to meeting the held for sale criteria as of December 31, 2009. The carrying value of net assets was compared to the agreed upon sale proceeds of Lal Pir and Pak Gen, resulting in impairment.

The following table summarizes the revenue, income from operations of discontinued businesses,income tax expense and impairment of discontinued operations for the three and six months ended June 30, 2011 and 2010:

		Three Months				Six Months
		Ended June 30,				Ended June 30,
		2011		2010		2011		2010
		(in millions)
Revenue		$	59	$	296	$	148	$	674
Income (loss) from operations of discontinued businesses		$	(24)	$	3	$	(42)	$	48
Income tax benefit (expense)			7		6		13		(5)
Income (loss) from operations of discontinued
	businesses, net of tax	$	(17)	$	9	$	(29)	$	43
Loss on sale of discontinued operations		$	-	$	(9)	$	-	$	(22)